2005 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $2,500,000 AND $5,000,000

B.

% of Revenues Derived from Largest Accounts

+25% Profit

+25% Growth

2005

Average

Largest Commission Account

3.3% 2.5% 4.3%

High

10.1%

PROFILE

Low

1.0%

10 Largest Commission Accounts

14.1% 12.3% 14.4%

High

30.9%

REVENUES/ EXPENSES

Low

3.7%

C. Revenues Derived from Acquisitions Made in the Last 12 Months

FINANCIAL STABILITY

% of Agencies Acquiring Avg. Total Commissions Acquired

% of Net Revenues

16.1%

$445,781

11.1%

EMPLOYEE OVERVIEW

D.

Net Revenue Growth

+25% Profit

+25% Growth

Average

PRODUCER INFO

Net Revenue Growth (Organic)

8.2% 12.5% 24.3%

Net Revenue Growth (Total)

10.7% 20.8% 27.0%

SERVICE STAFF INFO

Revenue Growth by Source (as % of Prior Year’s Total Revenues)

Average

+25% Profit

30%

+25% Growth

TECHNOLOGY

20%

10%

0%

INSURANCE CARRIERS

% Total Revenue -10%

-20%

-30%

Commercial P&C

Personal P&C

Group L&H

P&C Service Fees

Individual L&H

Total Commissions & Fees

52